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Joined at the Hip : Monetary and Fiscal Policy in a Liquidity-Dependent World
Calvo, Guillermo; Velasco, Andrés - National Bureau of Economic Research - 2022
We study the effects of monetary and fiscal policies when both money and government bonds provide liquidity services … the supply of bonds. Those movements in government bond prices affect available liquidity, and therefore aggregate demand … interest rate on money. We conclude that in a liquidity-dependent world, fiscal and monetary policies are joined at the hip …
Persistent link: https://www.econbiz.de/10013172164
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Labor Market Dynamics When Ideas are Harder to Find
Bilal, Adrien; Engbom, Niklas; Mongey, Simon; Violante, … - National Bureau of Economic Research - 2021
This paper evaluates the impact of slowing economic growth on labor market dynamism and misallocation. It provides a model of endogenous growth via imitation in a frictional labor market. The framework accounts for rich data on worker job-to-job transitions as well as stochastic and lifecycle...
Persistent link: https://www.econbiz.de/10012696388
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Aggregate Implications of Indivisible Labor, Incomplete Markets, and Labor Market Frictions
Krusell, Per - 2008
This paper analyzes a model that features frictions, an operative labor supply margin, and incomplete markets. We first provide analytic solutions to a benchmark model that includes indivisible labor and incomplete markets in the absence of trading frictions. We show that the steady state levels...
Persistent link: https://www.econbiz.de/10012464776
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Wage Determination and Employment Fluctuations
Hall, Robert E. - 2003
Following a recession, the aggregate labor market is slack employment remains below normal and recruiting efforts of employers, as measured by vacancies, are low. A model of matching frictions explains the qualitative responses of the labor market to adverse shocks, but requires implausibly...
Persistent link: https://www.econbiz.de/10012468730
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Labor-Market Frictions and Employment Fluctuations
Hall, Robert E. - 1998
The labor market occupies center stage in modern theories of fluctuations. The most important phenomenon to explain and understand in a recession is the sharp decline in employment and jump in unemployment. This chapter for the Handbook of Macroeconomics considers explanations based on frictions...
Persistent link: https://www.econbiz.de/10012472302
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A Theory of Labor Markets with Inefficient Turnover
Blanco, Andres; Drenik, Andres; Moser, Christian; … - National Bureau of Economic Research - 2024
We develop a theory of labor markets with four features: search frictions, worker productivity shocks, wage rigidity, and two-sided lack of commitment. Inefficient job separations occur in the form of endogenous quits and layoffs that are unilaterally initiated whenever a worker's...
Persistent link: https://www.econbiz.de/10014544688
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Labor Misallocation Across Firms and Regions
Heise, Sebastian; Porzio, Tommaso - National Bureau of Economic Research - 2022
We develop a frictional labor market model with multiple regions and heterogeneous firms to study how frictions impeding labor mobility across space affect the joint allocation of labor across firms and regions. Bringing the model to matched employer-employee data from Germany, we find that...
Persistent link: https://www.econbiz.de/10013334515
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Cash-on-Hand and Competing Models of Intertemporal Behavior : New Evidence from the Labor Market
Card, David - 2006
This paper presents new tests of the permanent income hypothesis and other widely used models of household behavior using data from the labor market. We estimate the "excess sensitivity" of job search behavior to cash-on-hand using sharp discontinuities in eligibility for severance pay and...
Persistent link: https://www.econbiz.de/10012466022
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Liquidity and Governance
Back, Kerry - 2013
Is greater trading liquidity good or bad for corporate governance? We address this question both theoretically and … information concerns her own plans for taking an active role in governance. We show that an increase in the liquidity of the firm …'s stock increases the likelihood of the large investor 'taking the Wall Street walk.' Thus, higher liquidity is harmful for …
Persistent link: https://www.econbiz.de/10012458993
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The Effect of Liquidity on Governance
Edmans, Alex - 2011
This paper studies the effect of stock liquidity on blockholders' choice of governance mechanisms. We focus on hedge … measure governance intent rather than only studying instances of actual governance. We find that liquidity increases the … likelihood that a hedge fund acquires a block in a firm. Conditional upon acquiring a stake, liquidity reduces the likelihood …
Persistent link: https://www.econbiz.de/10012461091